Spend-Every-Penny is urging Canadian investors to ignore banks’ capital ratios:
“We have said that we’ll do what’s necessary to protect the Canadian banking system,” Mr. Flaherty reiterated on Saturday from Davos during a conference call with reporters.
It seems like only a few months back he was saying that his government would no more run a deficit than a man could have a baby.
With a hat-tip to Econbrowser, a graph from Calculated Risk puts the current crash in perspective:
Click for big
Volume was off today – month-end window dressing is done for another three weeks? – and PerpetualDiscounts eased off slightly. Recent increases in the Canada 5-year yield have triggered legitimate expectations (subject to volatility!) of five-year calls in the Fixed-Reset market.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 5.42 % | 3.91 % | 25,470 | 17.54 | 2 | 0.0000 % | 851.6 |
| FixedFloater | 7.27 % | 7.01 % | 65,980 | 13.88 | 7 | -0.3021 % | 1,380.5 |
| Floater | 5.41 % | 4.51 % | 32,457 | 16.37 | 4 | 2.8624 % | 970.7 |
| OpRet | 5.31 % | 4.78 % | 164,009 | 4.02 | 15 | -0.0334 % | 2,023.0 |
| SplitShare | 6.24 % | 10.18 % | 73,501 | 4.09 | 15 | -0.2611 % | 1,785.1 |
| Interest-Bearing | 7.08 % | 8.17 % | 37,095 | 0.87 | 2 | -0.2880 % | 1,998.9 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0234 % | 1,561.8 |
| Perpetual-Discount | 6.88 % | 6.87 % | 220,391 | 12.67 | 71 | -0.0234 % | 1,438.4 |
| FixedReset | 6.10 % | 5.64 % | 740,671 | 14.10 | 26 | 0.1287 % | 1,800.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| DFN.PR.A | SplitShare | -4.29 % | Asset coverage of 1.7-:1 as of January 15, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-01 Maturity Price : 10.00 Evaluated at bid price : 8.71 Bid-YTW : 8.14 % |
| ENB.PR.A | Perpetual-Discount | -3.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 22.70 Evaluated at bid price : 22.99 Bid-YTW : 6.09 % |
| PWF.PR.E | Perpetual-Discount | -3.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 7.12 % |
| GWO.PR.G | Perpetual-Discount | -3.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.74 Evaluated at bid price : 17.74 Bid-YTW : 7.45 % |
| ELF.PR.G | Perpetual-Discount | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 14.25 Evaluated at bid price : 14.25 Bid-YTW : 8.46 % |
| BNA.PR.A | SplitShare | -1.61 % | Asset coverage of 1.8+:1 as of December 31, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2010-09-30 Maturity Price : 25.00 Evaluated at bid price : 23.81 Bid-YTW : 10.18 % |
| BCE.PR.R | FixedFloater | -1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 25.00 Evaluated at bid price : 15.27 Bid-YTW : 7.06 % |
| BCE.PR.G | FixedFloater | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 25.00 Evaluated at bid price : 15.00 Bid-YTW : 7.23 % |
| TD.PR.P | Perpetual-Discount | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 6.71 % |
| TD.PR.A | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 21.91 Evaluated at bid price : 21.95 Bid-YTW : 4.92 % |
| BAM.PR.N | Perpetual-Discount | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 12.42 Evaluated at bid price : 12.42 Bid-YTW : 9.77 % |
| TD.PR.C | FixedReset | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 23.26 Evaluated at bid price : 23.30 Bid-YTW : 5.44 % |
| BAM.PR.K | Floater | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 7.65 Evaluated at bid price : 7.65 Bid-YTW : 6.97 % |
| MFC.PR.C | Perpetual-Discount | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.17 Evaluated at bid price : 17.17 Bid-YTW : 6.67 % |
| W.PR.H | Perpetual-Discount | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 19.53 Evaluated at bid price : 19.53 Bid-YTW : 7.13 % |
| BNS.PR.K | Perpetual-Discount | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 18.61 Evaluated at bid price : 18.61 Bid-YTW : 6.51 % |
| POW.PR.A | Perpetual-Discount | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 21.34 Evaluated at bid price : 21.34 Bid-YTW : 6.64 % |
| RY.PR.G | Perpetual-Discount | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.75 Evaluated at bid price : 17.75 Bid-YTW : 6.37 % |
| HSB.PR.C | Perpetual-Discount | 1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 7.39 % |
| BNS.PR.R | FixedReset | 1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 21.96 Evaluated at bid price : 22.00 Bid-YTW : 4.85 % |
| PPL.PR.A | SplitShare | 1.92 % | Asset coverage of 1.4+:1 as of January 15 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 9.02 Bid-YTW : 8.01 % |
| DF.PR.A | SplitShare | 1.93 % | Asset coverage of 1.4-:1 as of January 15, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-01 Maturity Price : 10.00 Evaluated at bid price : 8.96 Bid-YTW : 7.55 % |
| NA.PR.L | Perpetual-Discount | 2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.86 Evaluated at bid price : 17.86 Bid-YTW : 6.83 % |
| GWO.PR.H | Perpetual-Discount | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 7.14 % |
| BAM.PR.B | Floater | 2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 7.56 Evaluated at bid price : 7.56 Bid-YTW : 7.05 % |
| PWF.PR.A | Floater | 7.14 % | Basically, reversing Friday’s nonsense. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-02 Maturity Price : 11.85 Evaluated at bid price : 11.85 Bid-YTW : 4.43 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.X | FixedReset | 127,375 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 24.91 Bid-YTW : 6.41 % |
| NA.PR.P | FixedReset | 78,398 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-17 Maturity Price : 25.00 Evaluated at bid price : 24.90 Bid-YTW : 6.77 % |
| TD.PR.G | FixedReset | 63,070 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 24.86 Bid-YTW : 6.45 % |
| RY.PR.R | FixedReset | 59,340 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 24.92 Bid-YTW : 6.40 % |
| BAM.PR.H | OpRet | 53,151 | Desjardins crossed 50,000 at 22.15. YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2012-03-30 Maturity Price : 25.00 Evaluated at bid price : 22.10 Bid-YTW : 10.43 % |
| RY.PR.P | FixedReset | 26,115 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 25.12 Bid-YTW : 6.26 % |
| There were 12 other index-included issues trading in excess of 10,000 shares. | |||